Woman shot dead in suburban street

A woman has been shot dead in broad daylight in the middle of a street in Melbourne's west.

Police were called to Clive Street, West Footscray, following reports of a man and woman arguing in the street, shortly after 2.30pm.

Senior Sergeant Stephen McIntyre, of the homicide squad, said the woman, believed to be in her 40s, died from a gunshot wound to the head.

He said the woman was discovered lying dead on the street with a firearm placed across her chest.

"There's been an altercation, a firearm has been produced and shots have been fired, which resulted in a female dying," he said.

Sergeant McIntyre said the parties were known to each other.

Residents reported hearing a number of gun shots being fired within the vicinity of the street, police said.

"I heard three gun shots. Just bang, bang, bang," one witness told Seven News.

"It's shocking. I wouldn't expect it especially coming from here, everyone is so friendly," another resident added.

The woman is yet to be identified.

A West Footscray man, believed to be in his 50s, was arrested and is being questioned by police.

Police are also speaking to an elderly man, who lives in the street, and may have been a witness to the bloody confrontation.

The homicide squad remains at the scene and the street has been blocked off.